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They have been with us since July of 1983, but
you and your neighbors still may not know what they are, what they do, and how
they affect you and your property. To help you better understand this confusing
subject, the California Land Title Association has answered some of the
questions most commonly asked about supplemental real property taxes.
Q. When Did This Tax Come
Into Effect?
A. The Supplemental Real
Property Tax Law was signed by the Governor in July of 1983 and is part of an
ambitious drive to aid California's schools. This property tax revision is
expected to produce over $300 million per year in revenue for schools.
Q. How Will
Supplemental Property Taxes Affect Me?
A. If you don't plan on
buying new property or undertaking new construction, this new tax will not
affect you at all. But, if you do wish to do either of the two, you will be
required to pay a supplemental property tax which will become a lien against
your property as of the date of ownership change or the date of completion of
new construction.
Q. When And
How Will I Be Billed?
A. 'When' is not easy to
predict. You could be billed in as few as three weeks, or it could take over
six months. 'When' will depend on the individual county and the workload of the
County Assessor, the County Controller/Auditor and the County Tax Collector.
The assessor will appraise your property and advise you of the new supplemental
assessment amount. At that time you will have the opportunity to discuss your
valuation, apply for a Homeowner's Exemption and be informed of your right to
file an Assessment Appeal. The County will then calculate the amount of the
supplemental tax and the tax collector will mail you a supplemental tax bill.
The supplemental tax bill will identify, among other things, the following
information: the amount of the supplemental tax and the date on which the taxes
will become delinquent.
Q. Can I Pay
My Supplemental Tax Bill In Installments?
A. All supplemental taxes on
the secured roll are payable in two equal installments. The taxes are due on
the date the bill is mailed and are delinquent on specified dates depending on
the month the bill is mailed as follows:
- If the bill
is mailed within the months of July through October, the first installment
shall become delinquent on December 10 of the same year. The second installment
shall become delinquent on April 10 of the next year.
- If the bill
is mailed within the months of November through June, the first installment
shall become delinquent on the last day of the month following the month in
which the bill is mailed. The second installment shall become delinquent on the
last day of the fourth calendar month following the date the first installment
is delinquent.
Q. How Will
The Amount Of My Bill Be Determined?
A. There is a formula used
to determine your tax bill. The total supplemental assessment will be prorated
based on the number of months remaining until the end of the tax year, June
30.
Q. Can You
Give Me An Idea Of How The Proration Factor Works?
A. The supplemental tax
becomes effective on the first day of the month following the month in which
the change of ownership or completion of new construction actually occurred. If
the effective date is July 1, then there will be no supplemental assessment on
the current tax roll and the entire supplemental assessment will be made to the
tax roll being prepared which will then reflect the full cash value. In the
event the effective date is not on July 1, then the table of factors
represented on the following panel is used to compute the supplemental
assessment on the current tax roll.
| If the effective date is: |
The proration factor is: |
| Aug. 1 |
.92 |
| Sep. 1 |
.83 |
| Oct. 1 |
.75 |
| Nov. 1 |
.67 |
| Dec. 1 |
.58 |
| Jan. 1 |
.50 |
| Feb. 1 |
.42 |
| Mar. 1 |
.33 |
| Apr. 1 |
.25 |
| May 1 |
.17 |
| Jun. 1 |
.08 |
EXAMPLE: The County Auditor finds that
the supplemental property taxes on your new home would be $1,000 for a full
year. The change of ownership took place on September 15 with the effective
date being October 1: the supplemental property taxes would, therefore, be
subject to a proration factor of .75 and your supplemental tax would be
$750.
Q. Will My Taxes Be Prorated
In Escrow?
A. No, unlike
your ordinary annual taxes, the supplemental tax is a one time tax which dates
from the date you take ownership of your property or complete the construction
until the end of the tax year on June 30. The obligation for this tax is
entirely that of the property owner.
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